SPX Credit Spread Trader

Of all the top retail option brokers we discuss here, IB is the only one with options on futures. But I do not like their TWS platform at all and after some problems with it 5 years ago, I never went back. OX and ToS allow me to see the chains all on one page and all the spreads and other complex positions. IB I have to pick the strikes to look at or pick the spreads instead of seeing them all at once.

Next month I will dabble in the ES options but will only really switch from the SPX if the premiums and fills are that much better. Also using risk-based haircuts, I might not be as concerned over REG T v. SPAN margin. BUt ES options will definitely be a means of trading or hedging the S&P for me in the future ( no pun intended). Thanks for the input!

Quote from ChrisM:

Thank you for all answers.

Regarding ES - as I traded SPX before and I trade ES now I would recommend this change to you.

Firstly - liquidity is much better, but this is not all, as you may find margins much more attractive, although overnights are somewhat higher than daily numbers.

However, I want to share my latest experience with spreads. I use IB which is important using ES contracts (commission) but I just have learned today that spreads on futures options are not supported by TWS, i.e. you have to enter them leg by leg.
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Just before 4:00 today I put in an order to close my 1330/1340 March call spread for .05. I was filled within just a few minutes. The b/a was .05/.15 when I put in the order so I can't complain. Now onto hunting for April strikes.

ryan
 
Quote from ryank:

Just before 4:00 today I put in an order to close my 1330/1340 March call spread for .05. I was filled within just a few minutes. The b/a was .05/.15 when I put in the order so I can't complain. Now onto hunting for April strikes.

ryan
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Which broker are you using ?
 
Well the turning over market top is starting to rear its head a bit. Notice how today's price action was sandwiched between the 20-day SMA and the upper trendline of the price channel I drew. My bias is now firmly sideways but we might enter a bearish downwards move soon.

From here we either bounce off and continue the now lame push to new highs which keeps getting knocked down by headwinds or we break back into the channel and look for now tests of the 1250 lows in the coming 30 days or so.

Look for puts well past the recent 1250 lows and 200-day SMA which is hovering around 1235 or so. Better off at 1200 or below. On the call side, definitely over 1300 and give yourself 30 points or so beyond that for safety in case unexplained brilliant news pushes us past the 1295 resistance and into 1300 territory. We should bounce around there a bit if we ever get there so give yourself some cushion for theta to work if we do.

So 1200 to 1335 or so is my expected range from now until APR expiration.... unless the chart patterns change :)


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Quote from ChrisM:

Coach, few qs:

1. Any particular reason for SPX vs. ES or SPY ?

2. How hard is to get such fills on those spreads ? (I trade closer to ATM).

3. Does time frame for April come from experience or there is another reason (I open them somewhat earlier) ?

Thx
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For those of us that live a little closer to the edge and will sometimes allow the underlying to violate our shrot strike a bit, SPX has one HUGE advantage. It's European style, whereas SPY is American. Now normally I'm relatively patriotic and I like American products, but in this game, American sucks. :p

Granted, when you are trying to get filled on an ATM or just slightly OTM spread, SPX can be a headache. SPY has great fills, but 10X the commissions. Rolls (very important to us daredevils)are also more customizable because SPX has 5-point stikes. SPY essentially has the equivalent of 10-point strikes. All things said and done, the advantages of SPX make up for the difficulty in getting filled. JMHO:D
 
Quote from Cache Landing:

For those of us that live a little closer to the edge and will sometimes allow the underlying to violate our shrot strike a bit, SPX has one HUGE advantage. It's European style, whereas SPY is American. Now normally I'm relatively patriotic and I like American products, but in this game, American sucks. :p
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Agree about SPY (not necessarily in regards to patriotism :D ), but ES is European style, that is why I`m staying with it.

Large S&P would be the best for my CTA, but so far I have had awful experience with MAN electronic platform resulting calling the floor with almost every order.

Any rumors about large S&P going electronic ? That would be relief.
 
Quote from optioncoach:



So 1200 to 1335 or so is my expected range from now until APR expiration.... unless the chart patterns change :)


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As I use my own concept for this estimate, hence my reults:

60% chance btw. 1250 and 1330
30% chance btw. 1235 and 1235
10% chance over 1225/1360 range
 
Quote from ChrisM:

As I use my own concept for this estimate, hence my results:

60% chance btw. 1250 and 1330
30% chance btw. 1235 and 1235
10% chance over 1225/1360 range
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Oooops, should be:

60% chance btw. 1250 and 1330
30% chance btw. 1235 and 1335
10% chance over 1225/1360 range
 
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